Assume That the Formation of a Customs Union Turns Out

question 63

Multiple Choice

Assume that the formation of a customs union turns out to include the lowest-cost world producer of the product in question.Which effect could not occur for the participating countries?

• A) Trade creation-production effect
• B) Trade creation-consumption effect
• C) Trade diversion
• D) Scale economies and competition

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Definitions:

Allyl Cation

A positively charged ion (cation) with the formula C3H5+, characterized by a carbon atom connected to two other carbons via double bonds in a linear arrangement.

Carbon p Orbitals

Atomic orbitals composed of p electrons in carbon atoms, crucial for the formation of covalent chemical bonds through overlap.

Resonance Structures

Different forms of a molecule that have the same arrangement of atoms but differ in the placement of electrons, illustrating the delocalization of electrons within the molecule.

Major Products

The substances formed in the largest quantities during a chemical reaction, highlighting the efficiency of the reaction's pathway.